Stifel raises Nurix stock price target to $36, maintains Buy

On Wednesday, Stifel analysts increased the price target on Nurix Therapeutics Inc . (NASDAQ:NRIX) shares to $36.00, up from the previous target of $34.00, while reaffirming their Buy rating on the stock. The company’s shares, which have surged over 130% in the past year according to InvestingPro data, currently see analyst targets ranging from $16 to $41, reflecting diverse views on its potential. Stifel’s decision comes after a thorough assessment of the company’s wholly owned pipeline, which was presented at the ASH 2024 meeting.

The company’s recent earnings disclosure and corporate update did not reveal any significant new developments. However, Stifel analysts anticipate that the current year will be pivotal for Nurix, especially regarding the progress of NX-5948, which is under development for treatment in Chronic Lymphocytic Leukemia (CLL) and Non-Hodgkin Lymphoma (NHL). InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 6.46, providing financial flexibility for its clinical programs. Data updates in CLL and NHL are expected to provide insights into the response durability and safety/tolerability of NX-5948, which are key areas of interest.

Furthermore, the initiation of multiple registrational trials in CLL and the commencement of initial proof-of-concept trials in autoimmune diseases, starting with autoimmune-mediated cytopenias, are on the horizon for this year. Although data updates for NX-2127 and NX-1607 are projected to have a lesser impact on investor sentiment compared to NX-5948, Stifel analysts still recognize the potential of these programs to deliver positive surprises.

The revised estimates primarily account for an anticipated increase in research and development expenses for the fiscal year 2025 and beyond. The slight adjustment in the price target to $36 reflects updated valuation inputs as per Stifel’s analysis. For deeper insights into Nurix’s financial health and detailed analyst coverage, including 8 recent upward earnings revisions, check out the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.

In other recent news, Nurix Therapeutics reported a net loss of $0.75 per share in 2024, with collaboration revenue of approximately $13 million, which was bolstered by a $5 million milestone payment from Pfizer (NYSE:PFE). The company’s research and development expenses for the same period climbed by 22% quarter over quarter to $67.2 million. Despite these figures, Nurix concluded the year with around $610 million in cash reserves, which is expected to sustain its operations well into the first half of 2027. This financial stability was attributed to an at-the-market equity sale, which led to increased dilution and extended the target timeline to the end of 2025.

Analysts from Needham and H.C. Wainwright have adjusted their price targets for Nurix, with Needham cutting it to $28 while maintaining a Buy rating, and H.C. Wainwright lifting it to $36. The changes were influenced by Nurix’s financial maneuvers and recent earnings report. Additionally, the company has made key executive appointments, with John Northcott stepping in as the new Chief Commercial Officer and Anil Kapur joining the board of directors.

Nurix’s lead drug candidate, NX-5948, has received Fast Track designation from the U.S. Food and Drug Administration for the treatment of adult patients with Waldenstrom’s macroglobulinemia. The European Medicines Agency has also granted the drug PRIME designation for the treatment of chronic lymphocytic leukemia or small lymphocytic lymphoma. Furthermore, Nurix plans to sell up to $300 million of its common stock through an equity distribution agreement with investment bank Piper Sandler & Co. These are recent developments in the operations and financial standing of Nurix Therapeutics.

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